City Comptroller Scott Stringer is endorsing a plan to resolve some of the crushing debt experienced by taxi drivers who purchased medallions and incurred financial hardships so severe that it drove some of them to suicide.
The New York Taxi Workers Alliance’s proposal would give medallion holders refinancing at $125,000 with restructured financing over 20 years and 4% interest meaning a monthly mortgage of about $157.
According to Stringer, this would only cost the city $75 million over 20 years — a drop in the bucket when compared to the $90 billion budget.
According to Stringer, it may be worth it for the city to give in to the demands of cab drivers in offering help restructuring loans as it will save the municipality money in the long term by avoiding pricy lawsuits.
“Part of what I’m assessing here is that $75 million may end up being good for the city as well because it will limit our exposure to many lawsuits,” Stringer said. “Equally important, we’d be restructuring these loans so that the people who drive cabs and are making the payment can actually make payments.”